Molson Coors Brewing CompanyTAP

Morningstar Rating

Stock Research and Analysis

by Thomas Mullarkey, CFA

Molson Coors owns an impressive portfolio of brands along with a broad distribution network that allows the firm to generate excess returns on invested capital and gives the company a narrow economic moat. Molson Coors has built a solid reputation for Read more

Bulls Say

Molson Coors is the second-largest brewer in Canada and the United States. This scale helps the firm leverage fixed costs and operate a very cost efficient supply chain.

When the employment situation in North America improves, beer volumes likely will pick up thereby enhancing Molson Coors' financial performance.

SABMiller's appetite for global consolidation could make Molson Coors an attractive acquisition.

Management has a strong track record of slashing costs and undertaking key strategic actions (such as mergers and joint ventures) in order to unlock more shareholder value. Read more

Bears Say

The company operates in mature, low-growth beer geographies where price wars can negatively impact profitability.

Molson Coors' premium lagers face stiff competition from a multitude of craft brews as well as spirits and wine.

Low levels of employment in the company's core markets of Canada, the United States, and the United Kingdom have helped to drive down total beer volumes in those countries.

The Coors and Molson families have voting control over the company. The Class B shares held by minority shareholders provide owners with very little influence over the firm. Read more

Management

We believe that Molson Coors' management team has been a standard steward of shareholders capital. While we applaud some of the team's strategic moves, such as the MillerCoors JV, that have delivered an abundance of shareholder value, we note that the Read more

Profile

Molson Coors is one of the largest brewers in the world. Major brands include Coors Light, Molson Canadian, Staropramen, Carling, Miller Lite, Keystone, Blue Moon, and Leinenkugel's. Read more